A statue is pictured next to the logo of Germany’s Deutsche Bank in Frankfurt, Germany September 30, 2016.
Kai Pfaffenbach | Reuters
Deutsche Bank beat market expectations to post an eighth consecutive quarter of profits on Wednesday, posting net profit of 1.046 billion euros ($1.06 billion) in the second quarter.
The German lender beat consensus expectations among analysts aggregated by Refinitiv with a profit of 960.2 million euros, and significantly improved profit by 692 million euros for the same period last year.
Here are some other highlights from the quarter:
- Total turnover amounted to 6.6 billion euros, up 7% compared to 6.2 billion for the same period last year.
- Total spending was 4.87 billion euros, down 3% from 4.998 billion in the second quarter of 2021.
- Return on tangible equity was 7.9%, compared to 5.5% a year ago.
- The CET1 capital ratio, a measure of bank solvency, was 13%, down from 12.8% in the first quarter.
“With the best half-year earnings since 2011, we have proven – once again – that we can deliver growth and rising earnings in a challenging environment,” Deutsche Bank CEO Christian Sewing said in a statement. .
“We are particularly pleased with the progress of our corporate and private banking. With our successful transformation, we are on track to deliver sustainable and balanced returns across our four core businesses.”
Chief Financial Officer James von Moltke also told CNBC on Wednesday that the drivers of earnings growth have been strong in the bank’s core businesses.
“That momentum that we talked about last quarter carried over into the second quarter, for sure. Our corporate banking was up 26% year-over-year, driven not only by interest rate , but also through volume growth, growth in commission income,” he said.
“Investment banking performed very well at 11% (growth) and 32% in our FIC business (fixed income and currencies), so we were able to navigate these markets, take advantage of trends.”
Last month, Sewing called inflation the “biggest poison” for the global economy and told CNBC that the risk of recession was growing in Germany and beyond.
Deutsche Bank beats expectations and posts eighth straight quarter of profits
Source link Deutsche Bank beats expectations and posts eighth straight quarter of profits